The Bank of New Zealand is slashing its six-month home loan rate to a level it says has not seen since the 1960s.
From 21 February, the bank will be offering a rate of 4.99%.
The rate will be available until 6 March.
BNZ spokesperson Blair Vernon says the rate is the lowest the bank has ever offered and that Reserve Bank records show it is the lowest in 45 years.
He is partly crediting the low Official Cash Rate for the cut.
Conditions include an establishment fee for new loans and a 20% deposit.
Earlier, Kiwibank cut its floating rate to 5.99%, in anticipation of the Reserve Bank cutting the benchmark rate next month.
Separately, Westpac cut its floating home loan rate to 6.49%.